Racke buys and restructures

27 August, 2008

Page 5

The Racke Group has announced that it is re-align its business and move to new European headquarters in Mainz, following the takeover of Eggers & Franke.

The purchase of the outstanding shares in the Bremen-based fine wine distributor from KWV, its long term partner with the Golden Kaan, South African wine brand, makes Racke one of the leading premium wine distributors in Europe.

Managing director, Marcus Moller-Racke, said: "This new structure represents an important step towards the continued and further internationalisation of our company."

A statement from the KWV chairman, South African winemaker, Danie de Wet and CEO, Thys Loubser, says: "The success of Golden Kaan and the synergies of KWV and Racke now make the merger of Eggers & Franke, commercially viable and meaningful, as it provides KWV and Racke with an expanded profitable base for penetration into the important German market."

The deal sees KWV selling its shareholding in E&F to Racke, while still using it as its channel to the German market for KWV's Laborie and Golden Kaan wine brands.